Luis Caputo downplayed the setback due to the Omnibus Law, but warned governors: “It will imply a greater adjustment, it’s obvious”

After the setback suffered with the Omnibus Law of Deputies, which returned to the Commission yesterday, the Minister of Economy, Luis ‘Totò’ Caputo, underlined on Wednesday that the Government reached “financial equilibrium” in the month of January, and confirmed that “The failure to approve the ‘Basics’ Law does not prejudice the national economic program in the slightest. Furthermore, he was encouraged to forecast inflation for February and announced that the legislative setback “will imply a bigger adjustment, obviously.”

“In January, which is a more sensitive month from a financial point of view because there is the payment of interest on the debt, We are already financially balanced and lawless“Caputo highlighted.

In a conversation with La Nación+, he explained that “for this reason” he withdrew the tax package from the draft Basic Law. In this sense, the head of the Treasury Palace remarked that “everything that has been planned” by the government and the economic team “is happening and definitely better than most analysts expected.

“January, the first month, without the law we have already reached zero deficit,” Caputo underlined.

Asked about the suspension of yesterday’s session in the Chamber of Deputies in which the mega reform project promoted by the Government was being discussed, Caputo underlined: “The failure to approve the law in particular does not affect our economic program in the slightest, nor our commitment to stabilize tax accounts”.

“In fact, I had taken the tax package out of law, but not only that, but in assembling that package, most of the tax bill adjustments were already out of law,” he added.

Likewise, he acknowledged that “there was a possibility that this would happen” because, he said, “we are fighting against a handful of legislators, the caste, who don’t want any change in Argentina.”

Inflation forecasts for February

Regarding the inflation data released in the months of December and January (the January numbers will be released on the 14th), the minister specified that the numbers “They are performing below what was expected”.

“Several economists had predicted 30% inflation for December; 30% for January and 20% for February. Well in December it reached 25%, in January it reached 20% and in February it will be below 20%,” he anticipated.

He added: “It’s coming in significantly below what was expected, very high, but below what was expected; and the most important thing is to save the signal: the measures work,” she said enthusiastically.

The minister stressed that Argentina “is a patient addicted to the deficit and is now in rehabilitation” and predicted a better half-year in the second half of the year.

“The improvement in the Central Bank’s balance sheet has been significant – assures Caputo – and we will certainly have a calmer second half of the year. Here we must not lose direction or direction, the process will be tough, but it is already working.” , he assured.

Caputo said, during the interview with journalist Antonio Laje, that “people understand that they have to make a great effort. A tremendous effort, but they know that it will lead them to a good port”.

The head of the Economy focused “on the reduction of inflation” and on the fact that economic relief will come “when the country returns to growth”.

“Inflation is already falling. In fact, it is decidedly lower than expected. It is clear that the figures are very high, but they are lower than expected,” Caputo underlined.